Crypto Update US House to Vote on Reversing Bidens Veto of SAB 121
An impending surge in crypto activity is anticipated next week as the U.S. House of Representatives prepares to vote on reversing President Biden’s veto of Staff Accounting Bulletin 121 (SAB 121). This bulletin mandates companies reporting to the SEC to disclose their cryptocurrency holdings on their balance sheets, following a schedule outlined by House Majority Leader Steve Scalise.
What implications does this hold for the crypto market and its stakeholders?
A Pivotal Moment in Crypto Regulation
President Biden’s veto marks a critical juncture in the ongoing debate over cryptocurrency regulation. Despite bipartisan congressional support to annul SAB 121, the president upheld his stance, emphasizing the necessity for robust consumer and investor safeguards.
Introduced by the SEC in 2022, SAB 121 has encountered strong opposition from the crypto industry and financial institutions, arguing that it imposes exorbitant costs on providing digital asset services. Banks contend that the guidelines inhibit their expansion into digital assets due to financial constraints.
Understanding the Veto
Efforts to repeal SAB 121 garnered substantial backing, with 11 Senate Democrats and a House majority of 228-182 endorsing its annulment. Advocates for repeal assert that the SEC’s directives curtail Americans’ ability to incorporate digital assets into traditional banking channels.
Potential Hurdles
In May, the House narrowly endorsed SAB 121 with a 228-182 vote, primarily supported by Republicans and 21 Democrats. The Senate similarly approved it with a 60-38 margin, bolstered by Senate Majority Leader Chuck Schumer’s endorsement. However, overturning President Biden’s veto necessitates a two-thirds majority in both chambers of Congress.
Alexander Grieve from Paradigm speculates that sufficient House votes could be mustered to override the veto, citing past bipartisan backing for analogous legislation. Conversely, Cody Carbone of the Chamber of Digital Commerce remains skeptical of such an outcome.
Additionally, bridging the gap of approximately 60 votes within a week poses a formidable challenge for the House.
What Lies Ahead?
The upcoming vote, slated for Tuesday or Wednesday, serves as a litmus test for bipartisan backing of the Financial Innovation and Technology for the 21st Century Act. This legislation aims to clarify regulatory frameworks for cryptocurrencies and other digital assets.
As the 2024 U.S. election looms, both President Biden and Republican contender Donald Trump have increasingly focused on digital asset issues, signaling a shift towards more favorable stances for the cryptocurrency sector.
Overall, while prospects for overriding the veto offer a glimmer of hope, prevailing circumstances suggest a daunting path forward.
What are your predictions for the future of crypto amid such political developments? Share your thoughts.